Redline Awarded Major Contract for New Wireless Oilfield Network

Redline Communications Group Inc. (TSX: RDL), a leading provider of broadband wireless solutions for machine-to-machine (M2M) communications, today announced a significant contract with a leading American oil and gas company for a high-capacity wireless network for communications between wells, other assets, and drilling rigs in the oilfield, and their centralized control offices.

This oil company customer, already using Redline’s system in other parts of the world, is expanding its operations to Oman and has turned to Redline once again to meet their exacting communications requirements. Delivery of products and services associated with the contract, which is expected to represent approximately 10% of Redline’s annual revenue for 2012, begins immediately with full deployment of the network expected to take up to 18 months.

“This contract is a major achievement for Redline and we are proud to have been selected as the network backbone for yet another oilfield project with this customer,” said Eric Melka, CEO of Redline. “We work hard to demonstrate value for our customers and when they select us for more deployments in more countries we know that we’ve been successful.”

Redline’s advanced wireless broadband system, which leads the industry in reliability, distance, capacity and low-latency, allows personnel to monitor and control oil field production – including the ability to capture data in real-time from thousands of M2M sensors at remote sites.

The Virtual Fiber™ network will be built using Redline’s RDL-3000 and ELTE-MT systems, rugged and reliable wireless broadband equipment designed by Redline for harsh environments, and engineered and built to the exacting standards required by the energy sector.

“Major oil and gas producers worldwide are turning to real-time monitoring and control capabilities to expand production at new, existing and mature oilfields,” said Bojan Subasic, Redline’s associate vice president development and production. “A leading-edge wireless network makes the digital oil field possible and Redline’s unique system architecture, based on the most advanced technology available today, combines powerful software and rugged hardware to support the M2M, security, communications and other critical real-time applications – all with the assurance that the network can grow to meet future customer needs.”

Redline’s Virtual Fiber network system offers the ability to instantly adjust to the living oil field as a whole — from individual well production, to drilling rigs, to the pressure of a part or all of the reserve itself — based on a variety of sensor data, including pressure, temperature, and flow. This capability allows the oil company to optimally run each well or each drill, maximizing drilling efficiency and uptime while minimizing breakdowns from drilling too quickly through hard rock or other obstacles that could hamper the drilling activity.

To learn more about Redline’s Virtual Fiber network system, including the only nomadic high bandwidth solution focused to the energy sector, visit http://www.rdlcom.com/en/industry/oil-and-gas.

About Redline Communications
Redline Communications is the innovator of Virtual Fiber™, a specialized broadband wireless system used to cost-effectively deploy and extend secure networks, enable M2M applications, connect digital oilfields and smart grids, facilitate and enhance public safety networks, and bring Internet access wherever and whenever it’s needed – regardless of terrain or how remote. For more than a decade Redline has delivered powerful, versatile and reliable wireless solutions to governments, militaries, oil and gas companies and telecom service providers through its global network of certified partners. For more information visit www.rdlcom.com.

Forward Looking Statements
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